The velocity of circulation is
A) the relationship between income and spending.
B) the relationship between increases in income and investment.
C) the ratio of currency to demand deposits.
D) the average number of times per year a dollar is spent on goods and services in GDP.
D
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In which price range of the accompanying demand schedule is demand elastic (based on the midpoint formula)?PriceQuantity Demanded$42342618
A. $3-$2 B. $2-$1 C. below $1 D. $4-$3
Part of the spending on the Doyle Drive project in northern California came from the American Reinvestment and Recovery Act, which is an example of ________ aimed at increasing real GDP and employment
A) an automatic stabilizer B) a transfer payment C) discretionary fiscal policy D) contractionary fiscal policy
Which investment caused the Reserve Primary Fund to incur heavy losses?
A) mortgage-backed securities B) real estate investment trusts C) commercial paper issued by Bear Stearns D) commercial paper issued by Lehman Brothers
Suppose Seth and Nathan are college students with the same annual income, yet Seth pays half of the annual income tax that Nathan does
Which statement best summarizes a possible issue with this outcome from a principle of tax policy perspective? a. It violates the principle of vertical equity. b. It violates the principle of diagonal equity. c. It violates the principle of horizontal equity. d. It violates the benefit principle.